"The numbers don't lie," said Herb Rosenthal, first selectman of Newtown and president of the Connecticut Conference of Municipalities, the state's largest organization of cities and towns. "Under the proposed budget, towns and cities would fall farther behind."

That comes as cities and towns face 5 to 8 percent budget increases because of rising energy costs, salaries and inflation, said Colchester First Selectman Jenny Contois, president of the Council of Small Towns. Without additional state aid, Contois said municipalities will have to raise local property taxes.

"Nobody on this committee needs to be told what this will do to our communities and our taxpayers," Contois told the Appropriations Committee.

The committee, controlled by Democrats, is in the process of putting together its proposed adjustments to Rell's two-year budget plan. Ultimately, the two sides must reach a compromise before this year's session ends on May 3.

A call was left seeking comment from Rell's office.

The governor's budget does include a plan to eliminate the local property tax on residential cars. Municipalities would be reimbursed for the lost tax revenue. In some cases, Rell said, municipalities might receive more money than they would have under the old system.

But Contois said she believes her town will lose money under the governor's proposal. She said local taxpayers will ultimately make up the difference.